Revenue up three percent to $2.6 billion.
Earnings from continuing operations of $0.79 per share. Adjusted
earnings from continuing operations up 17 percent to $0.84 per share.
2010 adjusted earnings per share guidance increased to a range of
$4.05 to $4.20 – projected midpoint growth of nine percent over 2009
adjusted earnings per share. Revenue guidance raised to four percent
total growth and three percent organic growth.
WHITE PLAINS, N.Y. — (BUSINESS WIRE) — April 30, 2010 —
ITT Corporation (NYSE:
ITT) today reported 2010 first-quarter revenue of
$2.6 billion and income from continuing operations of $146 million, or
$0.79 per share. Excluding special items, income from continuing
operations for the quarter was $156 million, or $0.84 per share,
representing 17 percent year-over-year growth. Special items in the
year-ago period included a $54 million tax-related gain, compared with a
$10 million expense in the first quarter of 2010, primarily related to
the recent U.S. healthcare reform legislation.
“Promising organic growth combined with ITT’s focused execution got us
off to a great start in 2010. Our Motion & Flow Control business
delivered significant increases in revenue and operating income. Our
Defense & Information Solutions business made great progress on its
strategic realignment, and significant productivity gains drove margin
improvements in both our Fluid Technology and Motion & Flow Control
businesses,” said Steve Loranger, ITT’s chairman, president and chief
The company also raised its full-year 2010 adjusted earnings per share
guidance from its previously announced forecast of $3.90 to $4.10 to a
new forecast of $4.05 to $4.20. Revenue guidance for the year is revised
from the company’s previously announced forecast of three percent growth
to a new forecast of four percent growth. Organic revenue (defined as
total revenue excluding foreign exchange and merger and acquisition
impacts) is expected to grow three percent, compared with a previous
forecast of two percent growth.
“Our global teams delivered results above expectations, and we are
seeing improving conditions in certain end markets, giving us confidence
in raising our full-year earnings outlook,” said Loranger. “We also
delivered higher than expected free cash flow, and our strong financial
position enabled us to announce an 18 percent dividend increase in the
quarter, while we continued to advance our cash deployment and portfolio
strategy through ITT’s acquisition of Nova Analytics.
“We believe our strategies to align the portfolio with enduring human
needs, while delivering organic growth and focused execution, will
continue to drive excellent, sustainable growth -- as ITT has
demonstrated this quarter and over the past five years.”
First-Quarter Segment Results
Defense & Information Solutions
First-quarter 2010 revenue for the Defense segment was $1.5 billion,
down four percent compared to the year-ago period. Volume declines
from strong prior-year results for tactical radios and counter
improvised explosive device units were partially offset by growth in
service contracts, special purpose jammers and very strong
international night vision goggle revenues.
Strong productivity in the segment was more than offset by increased
costs related to the business’ strategic realignment, higher pension
costs, and lower volumes, resulting in an 11 percent decline in
operating income to $146 million.
Backlog at the end of the quarter was $5 billion, and significant
orders during the quarter included international night vision goggles,
airborne integrated defensive electronic countermeasures, Saudi Arabia
tactical radios and next generation satellite radios. ITT was also
selected by the U.S. Air Force Space and Missile Systems to provide
components and services for the next generation of the Global
Positioning System (GPS).
First-quarter 2010 Fluid Technology revenue of $801 million was up
eight percent on a year-over-year basis. Organic revenue was flat, as
growth in residential markets was offset by a decline versus the
strong year-ago period in industrial projects. Organic orders for the
segment were up three percent, largely driven by stabilizing
residential market conditions and strong mining, oil and gas projects.
First-quarter segment operating income was $91 million, up 32 percent
from the comparable prior-year period, driven by exceptional
productivity and lower restructuring and realignment costs.
Key recent achievements include an award to create an energy-efficient
water system in Chongqing, China; a full suite of treatment equipment
to upgrade a water reclamation plant in Maryland with ITT’s Flygt,
Leopold, WEDECO and Sanitaire product lines; a desalination award in
Saudi Arabia; and the start-up of the one of the largest dissolved air
flotation water treatment systems in North America. The company also
completed the acquisition of Nova Analytics, establishing a new growth
platform for ITT in the $6 billion analytical instrumentation market.